New York Reaches $1 Billion in Cannabis Retail Sales According to Governor Kathy Hochul

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Ending 2024, New York closed out the year by rolling in $1 billion in retail sales for the state’s cannabis industry, according to New York Governor Kathy Hochul (1). In 2021, cannabis in New York was legalized for recreational use but over the last few years it has been rolled out very slowly and created a “gray” market and due to this slow rollout cannabis businesses struggled to get their hands on licenses (2,3).

The New York cannabis industry was also slow to rollout since its inaugural year due to the overhaul of the Office of Cannabis Management (OCM) (1,4).

“Earlier this year, my administration took critical steps to promote progress and economic opportunity within New York's budding cannabis industry, including signing new enforcement powers into law that expedited the closure of unlicensed storefronts and, as a result, bolstered our legal market,” Governor Hochul commented (1). She further added, “Today, we recognize the $1 billion milestone as more than just a number—it’s a testament to the hard work of those who helped build the strongest cannabis industry in the nation: one that prioritizes equity, ensures public safety, and empowers communities.”

Office of Cannabis Management acting director, Felicia A.B. Reid said (1), “This milestone is a testament to the resilience, hard work, and innovation of cannabis entrepreneurs across New York. As $1 billion is an incredible number. Let us celebrate the individuals, businesses, and communities in cannabis who drive our state’s economic engine.” Reid additionally mentioned, “Certainly, this moment underscores the strength of consumer demand for regulated cannabis—more importantly, it firmly demonstrates that a social and economic equity approach to industry is not antithetical to strong economic growth. New Yorkers have placed their trust in a market that prioritizes equity—and OCM remains committed to supporting that mission.”

In the press release, it disclosed that over half of the adult-use licenses that have been given out, were provided to Social and Economic Equity applicants (1), a significant portion were women-owned and minority establishments. Aside from the applications, the cannabis industry in New York State has witnessed significant growth in cannabis consumption. Throughout the last 10 years, 19% of New York consumers reported annual use which is up 30%. 12% of consumers shared that they consume monthly and is up 43% over the last decade and lastly, the press release mentioned that 67% of consumers that had consumed cannabis over the last year were purchasing their products from legal retail establishments (1). By acquiring their products in legal businesses, it shows that consumers are feeling confident “in the regulated market” (1).

“New York’s cannabis industry was designed with a focus on equity and opportunity, and today’s achievement is proof that our approach is working. By prioritizing Social and Economic Equity applicants, we’re creating a market that uplifts communities and fosters meaningful economic impact across the state,” Tremaine Wright, chairwoman of the Cannabis Control Board, mentioned (1). “The tax revenue generated by this thriving industry directly supports our Community Reinvestment Grant Program, ensuring that communities disproportionately impacted by cannabis prohibition receive critical investments. This is only the beginning of what’s possible when we invest in an inclusive and well-regulated industry.”

“As the Buffalo Bill's coach says, ‘Trust the process.’ Things will continue to improve and be refined, but New York State's Office of Cannabis Management (OCM) has established a solid foundation towards the success of its infant cannabis industry. Congratulations to OCM staff, the advocates, and the backbone of it all, New York's cannabis supply chain of small businesses, in surpassing this milestone,” Crystal Peoples-Stokes, Assembly Majority Leader, explained (1).

The announcement of New York reaching its $1 billion retail sales milestone wasn’t the only good news witnessed. The OCM Annual Report was released and showcased some of 2024’s highlights.

As the press release mentions, below are some of the highlights that can be found in the OCM Annual Report (1,5):

2024 in Review

• Over 5,250 Licenses, Permits, and Registrations issued or provisionally approved to date in State Fiscal Years 2023-2024 and 2024-2025
• 221 Adult-Use Cultivator Licenses
• 292 Adult-Use Processor Licenses
• 569 Conditional Adult-Use Retail Dispensary Licenses
• 448 Adult-Use Retail Dispensary Licenses
• 185 Adult-Use Distributor Licenses
• 272 Adult-Use Microbusiness Licenses
• 3,265 Cannabinoid Hemp Licenses and Permits
• 17 Registered Organizations
• 269 Adult-Use Retail Dispensaries open for business
• 54.1 percent of Adult-Use Licenses issued to social and economic equity businesses
• $757.8 million in Adult-Use retail sales in 2024 as of November 30, 2024
• $80.2 million in tax, fee, and fine revenue in State Fiscal Year 2023-2024
• $67 million in tax, fee, and fine revenue by the mid-point of State Fiscal Year 2024-2025

EQUITY + COMMUNITY PARTNERSHIPS + TRAINING

• OCM continued its support for equity applicants and licensees into 2024 through its programs, including the Cannabis Hub and Incubator Program (CHIP) SEE Application Assistance, collaborating with Technical Assistance Providers, CHIP Academy, and the CAURD Accelerator Program.
• To significantly improve license processing, and enhance transparency, OCM implemented a single point of contact (SPOC) licensing review model.
• In partnership with the Cannabis Advisory Board, opened the application window for Community Reinvestment Program grants, which will invest in neighborhoods that have been historically under-resourced, underserved, and over-policed.
• In Feb. 2024, the OCM Veterans Taskforce was established to support, educate, and provide resources related to cannabis to the veteran population.
• In 2024, 22 Advanced Roadside Impaired Driving Enforcement Trainings were conducted by the Governor’s Traffic Safety Committee (GTSC) with support from OCM, training 797 officers in necessary skills to identify impaired driving.
• Additionally, four Drug Recognition Expert (DRE) Schools were held by GTSC with support from OCM, adding 60 newly certified DRE officers to the force and bringing the number of active DRE-Certified Officers in NYS to 445.

MEDICAL CANNABIS

• Over 100,000 patients registered with the Medical Cannabis Program
• Nearly 8,500 Registered Caregivers
• 4,454 Certifying Providers
• 21 Medical Dispensaries
• 11 Medical and Adult-Use Co-located Dispensaries
• 3,550 Lots of medical cannabis products laboratory tested
• 2024 Medical Cannabis campaign earned over 9.8 million impressions, over 42,500 clicks, and prompted 1 million video completions

ENFORCEMENT

• 1,300 enforcement inspections conducted
• 450 businesses padlocked
• 16,900 pounds of illicit products seized
• $68.5 million street value of products seized
• 8,700 Lots of adult-use cannabis products laboratory tested
• 431 field hours of compliance inspections

To read more about the OCM 2024 Annual Report, please click here (5).

References

1. Governor Hochul celebrates New York’s stronger than ever cannabis industry surpassing $1 billion in retail sales https://www.governor.ny.gov/news/governor-hochul-celebrates-new-yorks-stronger-ever-cannabis-industry-surpassing-1-billion (accessed Jan 3, 2025).
2. Colli, M. Slow legal cannabis rollout among NYC metro area creates boom in “gray” market https://www.cannabissciencetech.com/view/slow-legal-cannabis-rollout-among-nyc-metro-area-creates-boom-in-gray-market (accessed Jan 3, 2025).
3. Colli, M. New York settles lawsuit enabling more dispensaries to open their doors https://www.cannabissciencetech.com/view/new-york-settles-lawsuit-enabling-more-dispensaries-to-open-their-doors (accessed Jan 3, 2025).
4. McEvoy, E. New York governor appoints New Office of Cannabis Management Leadership https://www.cannabissciencetech.com/view/new-york-governor-appoints-new-office-of-cannabis-management-leadership (accessed Jan 3, 2025).
5. https://cannabis.ny.gov/system/files/documents/2024/12/ocm-annual-report-2024.pdf (accessed Jan 3, 2025).